Very often in Real Estate transactions that I am handling for clients, my clients ask me whether they think their purchase is a good deal or not. Parties involved in Real Estate transactions must understand that the purchasers Attorney does not know anything about the proper valuation of the subject property. Obviously, a buyer should do their homework in advance. More importantly, a buyer should work with a qualified Real Estate professional who is familiar with a specific neighborhood and market in question in order to properly advise the buyer as to the fair market value.
If the buyers is obtaining a mortgage, the lender will perform an appraisal, however, appraisals for mortgage financing purposes are not often accurate determinations as to the fair market value property. Often, an appraiser will not go out on a limb and will merely provide a valuation necessary to satisfy the lender.
A buyer must do their homework thoroughly in determining the fair market value of the property that they are purchasing.